The FSA believes the European Commission’s proposed changes to mortgage regulation will not impact on the regulator’s own plans for mortgage reform.
The EC is currently consulting on a Europe-wide regulatory system aimed at improving the efficiency and competitiveness of the market. Several commentators have questioned the FSA’s insistence on continuing with the MMR while it remains to be seen what measures the EC decides upon.
Speaking at a round table hosted by the the Centre for the Study of Financial Innovation thinktank, FSA director of conduct policy Sheila Nicoll said the regulator had been in regular dialogue with its European counterparts and currently there are no clashes between the two sets of proposals.
She said: “We are aware that the Europeans are working on this but we have kept them very closely informed of our thinking. A lot of their thinking has actually been informed by their knowledge from what we have provided them.
“We do not see anything in those proposals at this stage that contradicts the direction in which we are going. Clearly, we are under obligation to take account of what is going on in Europe and we will do that.”